The Fourth Secret to Accumulating Gold

aboutyourbiz (54)in #money • 7 years ago

There are seven secrets in this series to accumulating gold. This is the fourth secret found in The Richest Man in Babylon a great little book written by George S. Clason in the early 1920’s. I highly recommend reading this book as there is a certain benefit from reading the stories and hearing the language. It's old, but timeless, and can help put things into a perspective that comes from a time past, where people were literal slaves, not just financial slaves like today.

You will need the previous articles before you continue, as they build upon one another.
First Secret to Accumulating Gold
Second Secret to Accumulating Gold
Third Secret to Accumulating Gold

Protect your principal from loss.

The fourth secret to accumulating gold builds upon the third secret, of investing. Never make an investment where your principal sum is at risk. As mentioned briefly in the third article, an asset puts money in your pocket, anything else is speculation, and you can lose big in speculation. This is not to say that there is never a place for speculation, it's just not the place for your principal investment amount.

Crypto currencies are speculation, although Bitcoin may be an exception, but that remains to bee seen. The stock market is speculation. They can pay off big, but they can also suck you in and cause you to use monies you should not in an effort to make it big quick. The fourth secret, protect your principal from loss, is to keep your hard earned monies in your pocket and make it work for you. Use a portion of the earnings from this investment if you want to speculate, just make sure it's money you can afford to lose.

Consult with those who have experience.

Carefully study any opportunity you are looking at for investment. A part of studying an investment is to seek the counsel of those with experience in what you want to invest in. It doesn't make sense to partner with someone, who is a mechanic by trade, in an investment where they will be buying jewelry for resale. They have knowledge about cars, not fine jewelry. Partner with them to buy and flip cars, but not something they are not experienced in just because you think you can make a profit.

Careful research of every opportunity will keep you from acting spontaneously and potentially losing your seed money. It will help you to determine what partner you may have, if you need someone who has expertise that you don't have. Being disciplined in this will keep you from loaning to the wrong person and/or family/friends influencing you in a way that could cause you to lose your seed money.

Do you have debt you want to pay off? I have an idea for a project to start a debt elimination support posting/group, but I need to know if there is interest. Please let me know in the comments if you would like to participate in something that could help you get out of debt. It would be structured in such a way that you would not be putting up your personal details, but using percentages instead. I want people to be able to track their progress publicly and set goals and have accountability, but not be exposed in a personal way. Comment if you are interested! #debtfreeme